- 10x Research has made an observation on the movement of the Bitcoin rate, predicting further changes.
- Experts believe that the upward momentum of Bitcoin has already lost steam and anticipate a downward correction.
- The expected support level for Bitcoin is projected to be at $38,000.
In a report by 10x Research, it is suggested that Bitcoin may fall to the $38,000 level in the short term, as indicated by the relative strength index (RSI). CoinDesk has reported on this prediction.
“The Bitcoin RSI divergence indicates a correction,” the report stated.
While experts expect the correction of the crypto asset’s rate to end around the $38,000 mark, they acknowledge that if selling continues, further decline is not out of the question.
RSI is a popular tool used to assess short-term market dynamics, measuring the strength and direction of momentum, explained by Cointree.
In this particular scenario, where the price has reached an extreme but the accompanying indicators have not, it is considered “bearish.” 10x Research notes that the current Bitcoin market situation resembles a case of “selling after the fact” following the approval of ETFs based on the asset.
GBTC investors from Grayscale Investments could also have an impact on the price trend. 10x Research predicts that these investors are likely to redirect funds from GBTC to other options due to the high fees.
This coincides with JPMorgan Chase’s forecast, which suggested a potential outflow of $13 billion from GBTC to other spot Bitcoin ETFs.
However, prior to transferring funds, investors are expected to sell the received bitcoins, potentially putting pressure on the exchange rate, according to 10x Research’s report.
Other analysts, such as Jag Kuner, head of the crypto derivatives department at Bitfinex, also anticipate a short-term decline in Bitcoin’s value.
As per the current data from TradingView, the asset is trading around $42,460. However, there has been a recent drop to $42,176.